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Cross-border banking activity rebounded in Q1 2017, partly reversing the decline observed in the second half of 2016. Claims rose by $427 billion between end-December 2016 and end-March 2017, up 2% year on year.
Lending to non-bank borrowers drove the rebound. Claims on non-bank financial institutions were especially strong, rising by $218 billion in Q1 2017 and 8% year on year.
Cross-border lending to emerging market economies (EMEs) grew by $151 billion in Q1 2017, the largest increase since Q1 2014. The rise was driven by a few countries, most notably China and the Czech Republic, which saw exceptionally large inflows. [...]